STI issues first quarter unaudited account soars amid high performance
No doubt, the year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the negative effects of the recession that characterised the Nigerian economy this year.
However, for Sovereign Trust Insurance Plc, things are actually looking up considering the company’s first quarter performance in 2017. On a careful examination of the unaudited financial Statements which was recently released by the organisation, one can only say that indeed, it has been a season of impressive performance.
The total Gross premium written grew from N2.3b in the first quarter of 2016 to N4.1b in 2017 representing a 78% growth rate. In the same vein, the net premium income grew from N1.1b in 2016 to N1.6b in 2017 amounting to a growth rate of 48%.
The underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30% growth rate while Investment income also grew by 12% from N121m in 2016 to N135m in 2017 Q1. The profit before tax grew considerably from N241m in Q1 2016 to N488m in the same Q1 in 2017 representing a growth rate of 102% Worthy of note is the fact that the company’s Management Expenses reduced from N402m in Q1 2017 to N369m in the same period in 2017.
One can attribute this development to the Management Team’s commitment to reducing cost of operation as much as possible with the ultimate aim of delighting its shareholders.
Notwithstanding the harsh operating environment that has beclouded the operations of so many insurance companies and other corporate organizations in the first quarter of the year especially at a period that the Nation is still in recession, Sovereign Trust Insurance Plc has been able to record meaningful appreciation in all its financial indices going by its first quarter 2017 unaudited financial statements. The future indeed, looks very promising.